Corporate News: SoftBank Attacks Rival’s Sprint Bid
Sprint Nextel Corp has two offers to get taken over by either Dish Network Corp. or SoftBank Corp. Due to this dispute, the two companies are bidding and are bitter. Masayoshi Son who is the chief executive of the Japanese Internet and telecommunications company Softbank Corp, has made the roughly $20 billion acquisition of 70% of Sprint. However, since the deal is not fully through the approval process, Dish submitted a competing offer that would pay more in cash to Sprint shareholders.
Even though Dish has a higher monetary offer, Softbank still believes it has the strongest offer. This is because the deal will be done quicker, leaving shareholders with less debt and will provide Sprint with better leadership and mobile-industry expertise compared to Dish Network Corp.
However, Dish believes its offer is superior as it will lower costs because of the ability to offer combined wireless and video services.
At this point it could go either way or even end up as a three way deal. Where Dish would have a rented space on Sprint’s network as long as Softbank’s deal goes through. I personally believe Sprint will be acquired by Dish due to the monetary bonus and the appeal of diversifying their products.